Answer Happy

You have been appointed policy advisor of the country
Economia. The country is an open economy, has a floating
exchange rate regime and uses the Econ as its
currency.
The government is trying to understand the effect of the
following shocks on the exchange rate (𝐸𝐸𝑐𝑜𝑛/𝐹), the home and
foreign price level and real money balances. Use the fundamental
equation of the monetary approach to advise the government on the
effect of each of these shocks.
a. A decrease in foreign money supply
b. An increase in home real income
c. A decrease in the home nominal interest rate
d. A decrease in the foreign nominal interest rate